Whole Foods Market Inc. Case Study Essay

Whole Foods Market’s first retail location was in Austin, Texas. Today there are 342 stores in the United States, Canada and the United Kingdom. The growth of this health conscious conglomerate happened over the years by strategic acquisitions of profitable independent stores throughout United States. Mackey’s idealism and respect is exhibited in his openness about the contributions of these retailers to the success of WFM, as the website provides an in depth summary of each acquisition and its contribution to promoting healthier food choices (Whole Foods Market History, 2014). After four years in Austin, Texas WFM branched out into the city of Houston when it purchased the Whole Foods Company, and shortly after, on the west coast, a new store was built in Palo Alto, California. Subsequently WFM began aggressive acquisitions over the next few years, which help to accelerate the growth rate of WFM in other geographical locations. In 2002 WFM opened in Canada and in 2004 through the acquisition of United Kingdom’s grocery chain Fresh & Wild, it opened seven stores. Holistic eating is a worldwide affair that WFM is taking advantage

Whole Foods’ “product” is composed of two key concepts: physical organic goods and a healthy organic lifestyle. All goods sold at Whole Foods Market are organic, and there are various events hosted at individual locations that feature cooking classes and nutrition seminars. “By providing healthy eating education we inspire and empower our stakeholders to make the best…food choices to maximize health and vitality” (“We Promote,” n.d.). This provides a unique added benefit for its customers. In this way, it delivers value, both in the product offering of numerous healthy food substitutes and in the care that the company has for its patrons.

Whole Foods Market is one of the biggest organic and natural whole food suppliers in the world. They provide a wide variety of select foods that are without hormones or antibiotics and are stamped with the U.S. Department of Agriculture’s stamp of approval. They value the fact that they can provide people with access to healthy food and be identified with being socially and environmentally responsible.

Whole Foods was established in 1980 with one store in Austin, Texas. Today, Whole Foods is the world’s largest leader in natural and organic foods. There are over 310 stores in North America and the United Kingdom. Whole Foods is committed to the finest natural and organic foods available, sustainable agriculture and have one of the strictest of quality standards. Whole Foods offers customers a wide variety of products. “Natural” refers to food that is free of growth hormones or antibiotics, where “certificated

* Whole Foods Market was founded in 1980 working with natural and healthy foods in Austin, Texas; it’s one of the world’s largest of natural and organic foods supermarkets. In 2009, the sales total $8 billion and had 289 stores in the U.S. The Whole Foods Market plans to come up with strategies to help improve the company but to do so understanding the core values plays a major role in the company’s planning. The strategies

Whole Foods Market was founded by John Mackey as a healthy, socially responsible lifestyle that customers can identify with (Pearce & Robinson, 2013, p 29-1). The company differentiated itself from competitors by focusing on quality as excellence and innovation that allows them to charge premium price for premium products (Pearce & Robinson, 2013, p 29-1).

The first Whole Foods was hardly a small market. It was a 10,500 square foot supermarket with only nineteen employees. And although it wasn’t the first natural food supermarket, the threesome found instant success. Their stores not only included the typical natural food fare such as organic fruits and

Whole Foods has become the world’s largest retail chain of natural and organic foods supermarkets. Not only is their focus to transform the way consumers look at food and its natural benefits, Whole Foods is looking to make a difference in the world with their products. Whole Foods appears to be in a rapidly growing market. Whole Foods has worked hard to set their products apart from other grocery retail chains and while their prices might still be considered high across the board, their products are geared towards a more health conscious individual who is willing to pay more for a healthier product.

Whole Foods Market believes that the operation of a company should exceed beyond profits and focus on creating values and relationships within their communities. Whole Foods Market is “currently the 8th largest public food and drug retailer in the U.S., ranking #232 on the Fortune 500” (Whole Foods Market Annual Report, 2013). Food retailing has gained more competiveness over the years. Whole Foods Market, has been awarded, “America’s Healthiest Grocery Store.” Whole Foods Market’s “seek out the finest natural and organic foods available, maintain the strictest quality standards in the industry, and have an unshakeable commitment to sustainable agriculture” (Whole Foods Market Company Info, 2014). They believe that providing customers with natural and organic products, they are giving customers the most nutritious food and the best tasty food as well. “The quality of their foods is measured by nutrition, freshness, appearance, and taste” (Whole Foods Market Company Info, 2014).

* In 1996 Whole Foods Markets acquires Fresh Field Markets picking up 22 stores located on the east coast and Chicago area for 4.8 million shares of common stock and an option for 549,000 additional shares. (Thompson, 2010; C-13)

1.2 Executive Summary Whole Foods Market opened its doors in 1980 in the city of Austin Texas. The idea was clear Whole Foods Market wanted to sell natural and organic products, and with only 19 people working for Whole Foods Market, they were launched into the adventure of opened a supermarket focusing only on natural products regardless of price. One of the main reasons for Whole Foods Market is to have the best supermarkets, with the widest range of organic and natural products, while the goal is to have international presence as a brand in the natural products of higher quality. In a short time the chain of Whole Foods Market has had a most important growth in the supermarket industry in terms of natural and organic products.

According to Strategic Management Concepts and Cases, written by F. David, Whole Food Market, Inc.’s current mission statement is as follows, “to promote the vitality and well-being of all individuals by supplying the highest quality, most wholesome foods available” (David, 2011, p. 74). David also points out that Whole Food Market Inc.’s operating motto is as follows, “Whole Foods, Whole People, Whole Planet” (David, 2011, p. 75). As a food distributor, many of Whole Food Market Inc.’s objectives are

Whole Foods Market is a supermarket chain launched in 1980 and is the first certified organic grocer in the United States. They are a growing chain with 462 locations all around the world as of 2016 with more than 90,000 employees. Whole Foods underpinning culture is to sell the highest quality of organic products to meet the needs of every customers, while supporting their team members value.

Whole Foods Market has expanded by a mixture of opening its own new stores and acquiring already existing stores. Today WFM does not follow this strategy, instead their motivation is to open its own large stores. This is due to noticeable sales differences in larger stores as opposed to smaller stores. WFM locates these newer stores in upscale areas of urban metropolitan centers and high-traffic shopping locations. Not all WFMs are isolated structures; some are located in strip malls. WFM offers a larger selection of natural and organic foods than any other grocery store. WFMs marketing expenditure is extremely small. They spend a measly 0.5% of their revenues on advertising. Their chief marketing strategy relies on word-of-mouth. WFM strives to meet or exceed customer expectations. This is so customers receive competent, knowledgeable, and friendly service and become advocates of WFM. The employees here have a decentralized team approach for store operations. This is so some personnel, merchandising, and operating

Whole Foods Market began in 1970 as a local supermarket. Over the past 31 years, Whole Foods Market has grown from a single store in Austin, Texas, to becoming one of the worldwide leaders in providing consumers with natural and organic foods. They have grown to over 300 stores in both North America and the United Kingdom. (Whole Foods Market, Inc., 2011) This report examines the chief elements of the strategy that Whole Foods Market has put into place. Also, it uses past financial data to provide an assessment of the condition of the company going forward. Those assessments include recommendations of future actions, along with concerns I have about the way the company is currently operating and some difficulties that may be on the way.